Business

Port of Colombo terminal operators say they are completely insulated from national crisis

Published

4 years ago

2022/06/2

Sahan Weerasooriya

‘We are not who the foreign media says we are’

By Sanath Nanayakkare

Sri Lanka Ports Authority (SLPA), South Asia Gateway Terminals (SAGT), Colombo International Container Terminal (CICT), Jaya Container Terminal (JCT) and Ceylon Association of Shipping Agents (CASA) categorically said on Tuesday that negative news reports about the Port of Colombo are increasingly published in the regional countries, which are false and intended to mislead their customers.

Chairman of Sri Lanka Ports Authority Dr. Prasantha Jayamanna said,” In the last couple of months there has been lot of inaccurate, exaggerated reporting about the Port of Colombo continually circulating on web-based media platforms operating from regional countries that cater to the international maritime community. Apparently this is being done by vested interests that find it hard to match with the seamless connectivity and efficiency the Port of Colombo delivers to its customers. Obviously these parties are trying to take undue advantage from certain unfortunate events that took place in the country recently and undermine the versatility of the Port of Colombo as a transshipment hub in the region.

“Their intention is clear because when we request them to publish clarifications to put the record straight, they shirk that responsibility. The long standing relationship with our customers is time-tested and mutually beneficial. However, these particular articles in the foreign media need to be countered with true facts and figures or otherwise this covert operation could damage the reputation of the Port. I want to emphasize the fact that the Port is not impacted by what’s happening beyond the port. We have developed strategies and mechanisms to optimally operate the three terminals in the face of any possible disruptions stemming from fuel supplies or workforce turnout. Port of Colombo has a buffer stock of fuel and most effective shift patterns in place to ensure smooth operations,” he said.

CEO of South Asia Gateway Terminals Romesh David said,” We have seen a rise in negative publicity about the activities of the Port of Colombo in foreign media. They have picked out a couple of incidents that stemmed from the political and economic instability in the country and have attempted to negatively portray the operations at the Port of Colombo.”

“In April 2022, there were several issues in inter-terminal transfers resulting in delays due to Inter Terminal Trucking (ITT) not happening on time. Those delays were not due to fuel shortages. Fuel was issued to all three terminals for their ITT needs as we are primary customers of Ceylon Petroleum Corporation and Lanka IOC. On 9th and 10th of May, due to a lapse in communication, unfortunately work at the Port was hindered for over a day in spite of a clear understanding among all stakeholders that there was nothing to be gained from paralyzing the Port. At that point, even some supposedly responsible new organizations picked out those pieces of news and kept alluding them to issues at the Port. We are confident that the renewed consensus on the value of uninterrupted work which now prevails among all stakeholders will sustain smooth operations at the Port of Colombo.”

“85% of the volume that we handle in the Port is business that has nothing to do with Sri Lanka. It comes here on one ship and goes out on another. That is the primary function of the Port in addition to handling exports and now-restricted imports to the country. Since late 1990s, at every point in time, port operations have been completely insulated from the issues that the country at large undergoes. In 1999, SAGT came into being at the height of the war with a USD 250 million investment. Then in 2008, CICT came in during the global financial crisis with a USD 600 million investment. That was all because of the value the port of Colombo provides to the global shipping lines.”

“So the concern is this kind of negative publicity the Port gets in tandem with the problems the country faces could become ‘self-fulfilling prophesy’ if everybody keeps talking that there is a problem in the Port of Colombo when there is no such problem in the port . Our main customers could also get unnerved by it. Let me say on behalf of all three terminal operators and SLPA that we have sufficient fuel stocks and the Ceylon Electricity Board has given us their assurance to provide us with uninterrupted power generated by fossil fuel and coal. We are also looking at other contingency plans to mitigate any possible risks beyond the six-month horizon. If the need should arise, we as terminal operators are well-positioned to import our own requirement of oil to generate power. We are speaking as a unified team today because we want to send out a clear message to the international maritime community and the foreign media that the Port of Colombo continues to deliver high levels of reliability of service.”

Chairperson of Ceylon Association of Shipping Agents (CASA) Ms. Shehara de Silva said,” We are essentially the customers of the Port of Colombo and all ports in Sri Lanka .We have 132 members and we represent all the shipping lines that call at the Port of Colombo. All our principles are confident about the operations continuing in the Port of Colombo and we are thankful to the SLPA, CICT, SAGT and JCT for continuously handling all the operations effectively during this strenuous period.

“The negative press around the region is caused by a lot of ‘competing ports’. There are other ports that compete for the business of these shipping lines. Shipping lines prefer to use Colombo as a transshipment hub because there are so many facilities Colombo offers them. Even though there may be more advanced ports in the region, they still prefer to use Colombo. So we need to maintain that confidence of the shipping lines in the Port of Colombo and not leave any room for doubt that the crisis will affect operations. When you look at the volumes; exports are 4% more than last year and imports are less in line with government policy. And transshipment volumes are the same as last year. There have been some media reports that month of May witnessed a drop in volumes and in the number of vessels.

“But you have to understand and take that in context. There is seasonality in all areas. If you look at some of other ports that have suffered because of Covid, the condition in Port of Colombo is desirable. The information publicized by foreign media is completely unsubstantiated. As a customer, we give our testament that we are extremely happy with our working relationship with the Port of Colombo. Occasionally there may be operational issues which are not related to the crisis. We are in continuous dialogue with the three terminals to improve efficiency, digitalization and various other aspects. But those have nothing to do with the crisis of country.”

Last but not least, CEO of Colombo International Container Terminal (CICT) Jack Huang, said,” Port of Colombo is an international maritime hub in this region and everybody has a responsibility to cherish the Port of Colombo and help it grow because it is vital not only for Sri Lanka but also very critical for this region as well.”

Pics by Nishan S. Priyantha

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Business

India–Sri Lanka Business Forum highlights new momentum in trade, investment and connectivity

Published

46 mins ago

2026/05/23

Thilina Walpola

Dignitaries at the India-Sri Lanka Business Forum

The Ceylon Chamber of Commerce, in partnership with the Confederation of Indian Industry (CII), organised the India–Sri Lanka Business Forum: Partnering in Sri Lanka’s Growth and Investment and the CII – Ceylon Chamber CEOs Interaction in Mumbai on 13 May 2026. The events brought together senior government representatives, industry leaders, policymakers, and business delegates from India and Sri Lanka to deepen economic engagement and explore new avenues for cooperation across priority sectors.

The discussions reflected growing optimism about India-Sri Lanka economic relations and focused on expanding collaboration in trade, investments, connectivity, tourism, renewable energy, logistics, digital transformation, infrastructure, healthcare, education, manufacturing, and technology.

Participants included Mahishini Colonne, High Commissioner of Sri Lanka to India; Duminda Hulangamuwa, Senior Economic Advisor to the President of Sri Lanka; Dr Rajesh Ravindra Gawande, Secretary (Protocol, FDI, Diaspora & Outreach) and Chief of Protocol, Government of Maharashtra; Ms Priyanga Wickramasinghe, Consul General of Sri Lanka in Mumbai; Krishan Balendra, Chairperson, The Ceylon Chamber of Commerce and Chairperson, John Keells Holdings PLC; Anurag Agarwal, Co-chairman, CII Western Region Sub-committee on International Trade & Investment and Chief Executive Officer, Polycab India Ltd; Vishal Kamat, Chairman, CII Western Region Sub-Committee on Tourism and Hospitality and Executive Director, Kamat Hotels India Ltd; Bingumal Thewarathanthti, Vice Chairperson of the Ceylon Chamber and CEO Standard Chartered Bank Sri Lanka, Vinod Hirdaramani – Deputy Vice Chairperson of the Ceylon Chamber and Chairman Hirdaramani Group, and Shiran Fernando, Secretary General & CEO of the Ceylon Chamber.

Welcoming the delegates, Anurag Agarwal, highlighted the growing momentum in India–Sri Lanka economic relations and the emergence of future-oriented sectors driving bilateral cooperation.

He noted that India and Sri Lanka are at an important phase of economic collaboration, where connectivity, investments, innovation, and sustainable partnerships are creating new opportunities for shared growth. He further emphasised the significant potential for deeper engagement in sectors such as renewable energy, tourism, ICT, logistics, digital services, healthcare, manufacturing, education, and infrastructure.

Business

Proposed oil palm expansion sparks economic and environmental debate

Published

51 mins ago

2026/05/23

Thilina Walpola

Withanage and Kariyawasam speaking to journalists

Move to reconsider the ban on oil palm cultivation has triggered a heated debate among environmentalists, economists and plantation sector stakeholders, with critics warning that replacing rubber plantations with oil palm could weaken one of the country’s most valuable export industries while exposing the nation to long-term environmental and trade risks.

Environmental groups argue that the issue is no longer purely ecological, but a major economic policy question with implications for exports, foreign exchange earnings, rural livelihoods and Sri Lanka’s standing in international markets.

Sri Lanka banned oil palm cultivation in April 2021 through Extraordinary Gazette No. 2222/13 issued by former President Gotabaya Rajapaksa, citing environmental degradation, biodiversity loss, soil erosion and threats to water resources.

However, plantation companies are now reportedly lobbying for the reversal of the ban, arguing that oil palm offers higher short-term commercial returns compared to traditional plantation crops.

Environmentalists and policy analysts, however, caution that the long-term economic costs could outweigh the immediate profits.

Hemantha Withanage of the Environmental Justice Centre said Sri Lanka risks undermining a globally competitive rubber industry in pursuit of a commodity that generates comparatively limited national value.

“Rubber remains one of Sri Lanka’s strongest industrial export sectors. Replacing rubber with oil palm would be economically shortsighted because the downstream rubber manufacturing industry generates far greater export earnings, employment and industrial value addition, he said.

Industry statistics reveal a worrying decline in the rubber sector over the past four decades. Rubber cultivation has fallen from 171,126 hectares in 1982 to around 84,000 hectares in 2024, while production has dropped from 133,200 metric tons in 1980 to approximately 69,185 metric tons last year.

Despite shrinking cultivation, the rubber sector continues to deliver significant export revenue. Sri Lanka earned nearly USD 994 million from rubber exports in 2024, while rubber-based manufactured products generated more than USD 2.5 billion in export income.

The country also imports over USD million worth of raw and processed rubber annually to sustain domestic manufacturing demand, highlighting the strategic importance of maintaining local rubber production.

Analysts warn that further reductions in rubber cultivation could increase import dependency, weaken industrial supply chains and place additional pressure on foreign exchange reserves.

By contrast, Sri Lanka’s palm oil sector contributes relatively little to export earnings. In 2025, Sri Lanka imported 38,210 metric tons of palm oil and 33,696 metric tons of coconut oil, while the value of palm oil imports in 2023 stood at approximately USD 23 million.

Critics argue that oil palm cultivation mainly benefits plantation-level profitability rather than the broader national economy.

Thilak Kariyawasam of FIAN Sri Lanka said the environmental externalities associated with oil palm could eventually translate into significant economic costs.

“The industry’s impact on water resources, soil quality and ecosystems creates hidden financial burdens for the country. Pollution control, water management and biodiversity losses all carry long-term economic consequences that are often ignored in short-term investment calculations, he said.

Environmental groups also raised concerns that Sri Lanka could face reputational risks in export markets if environmentally controversial plantation policies are pursued.

The European Union, one of Sri Lanka’s most important export destinations and the provider of GSP+ trade concessions, has tightened regulations linked to deforestation and environmental sustainability.

By Ifham Nizam

Business

Talawakelle Tea Estates achieves International Organic Certification for Great Western and Logie Teas

Published

1 hour ago

2026/05/23

Thilina Walpola

(Up) The Logie Estate, factory is dedicated exclusively to organic tea production. (Down) Great Western Estate, certified for organic tea production under EU, USDA, and JAS standards

Talawakelle Tea Estates PLC has secured internationally recognised organic certification. A member of the Hayleys Plantations Sector and one of Sri Lanka’s premier Regional Plantation Companies, this milestone enables the Company to market certified organic teas under its renowned Great Western and Logie garden marks.

The certification spans three major global standards: the EU Organic Regulation of the European Union, the National Organic Program (NOP-US) of the United States Department of Agriculture, and the Japanese Agricultural Standards (JAS) for organic products. With this achievement, Talawakelle Tea Estates is now positioned to supply premium organic teas to international markets that demand the highest standards of certification, traceability, and product integrity.

“We are proud to reach this significant milestone after more than four years of dedicated effort to build a fully compliant organic cultivation and processing system that meets stringent international standards. This achievement shows the strength of our partnerships with the Tea Research Institute (TRI) and internationally qualified consultants and, most importantly, the commitment and collaboration of our estate and corporate teams. Together, we have established a robust and sustainable organic management framework that will support our long-term vision.” Talawakelle Tea Estates, Director / CEO, Nishantha Abeysinghe added.

To ensure consistent compliance with international standards, Talawakelle Tea Estates appointed dedicated full-time personnel from its estate teams and corporate sustainability division to oversee and manage every stage of the organic value chain – from cultivation to final manufacture.

The Company has also developed an end-to-end organic cultivation and processing management system covering the full value chain – from field-level practices to final manufacture – ensuring a structured and carefully monitored approach to organic tea production.

To safeguard product integrity and eliminate the risk of cross-contamination with conventional teas, the Company has designated low-risk fields exclusively for organic cultivation and dedicated the Logie factory entirely to organic tea production, minimising the risk of cross-contamination.

Following a series of rigorous audits, Talawakelle Tea Estates has secured full certification and is now set to launch its certified organic tea range globally under the prestigious Great Western and Logie garden marks names bringing together heritage and sustainability.

This achievement marks an important step in the Company’s broader journey to build a more sustainable, nature-based product portfolio in response to growing global demand. By combining strong garden identities with internationally recognised organic standards, Talawakelle Tea Estates continues to strengthen its position in the premium tea segment.